Measuring Aid Flows: A New Approach 1975-1995

Grant Element (GE): The grant equivalent, when expressed as a percentage of the discounted face value of the loan, is the grant element (GE) of the loan. By showing the fraction of a loan that is essentially cost-free, the grant element provides a comparable measure of loan concessionality across time, country and currency of issue.

Debt Forgiveness (DEBTF): Debt Forgiveness figures included in these files are provided by the OECD. In the construction of EDA, debt forgiveness is excluded from grants to avoid double-counting of actual lending flows.

Disbursements: The disbursement figures presented here are total disbursements on EDA loans made to each recipient country. EDA loans are all official loans excluding bilateral loans made for military and defense purposes.

Grant Equivalent (GQ): The grant equivalent of a loan is defined as the difference between the present values of the loan's disbursements and stream of expected debt service payments, or the resources that borrowers receive in excess of their interest and repayment obligations. Conceptually, for each loan, this amount is equal to the net loss to the lender -- equivalent to a grant. The computation of grant equivalents involves discounting two cash flow streams for each loan (disbursements and interest/amortization payments) using discount rates that reflect both the term structure of each loan and the market conditions specific to the loan's currency of issue at the time of valuation.

Effective Development Assistance (EDA): EDA is defined as the sum of grant equivalents and grants, excluding technical assistance. This adjusted measure uses the same conventional grant data but aggregates grant equivalents of loans (GQ) rather than the full face value of all loans deemed concessional. The grant equivalents used to construct EDA are computed using the methodology presented in "Measuring Aid Flows, A New Approach."

Technical Assistance: In the construction of EDA, Technical Assistance (TA) is excluded from grants. The variable, however, is separately available in the file as a memo item to provide the user with the option of constructing a broader definition of aid.

Grant Element (GE): The grant equivalent, when expressed as a percentage of the discounted face value of the loan, is the grant element (GE) of the loan. By showing the fraction of a loan that is essentially cost-free, the grant element provides a comparable measure of loan concessionality across time, country and currency of issue.

Debt Forgiveness (DEBTF): Debt Forgiveness figures included in these files are provided by the OECD. In the construction of EDA, debt forgiveness is excluded from grants to avoid double-counting of actual lending flows.

Disbursements: The disbursement figures presented here are total disbursements on EDA loans made to each recipient country. EDA loans are all official loans excluding bilateral loans made for military and defense purposes.

Grant Equivalent (GQ): The grant equivalent of a loan is defined as the difference between the present values of the loan's disbursements and stream of expected debt service payments, or the resources that borrowers receive in excess of their interest and repayment obligations. Conceptually, for each loan, this amount is equal to the net loss to the lender -- equivalent to a grant. The computation of grant equivalents involves discounting two cash flow streams for each loan (disbursements and interest/amortization payments) using discount rates that reflect both the term structure of each loan and the market conditions specific to the loan's currency of issue at the time of valuation.

Effective Development Assistance (EDA): EDA is defined as the sum of grant equivalents and grants, excluding technical assistance. This adjusted measure uses the same conventional grant data but aggregates grant equivalents of loans (GQ) rather than the full face value of all loans deemed concessional. The grant equivalents used to construct EDA are computed using the methodology presented in "Measuring Aid Flows, A New Approach."

EDA = EDA GQ + Grants - TA - B Debtf

Technical Assistance: In the construction of EDA, Technical Assistance (TA) is excluded from grants. The variable, however, is separately available in the file as a memo item to provide the user with the option of constructing a broader definition of aid.

Grant Element (GE): The grant equivalent, when expressed as a percentage of the discounted face value of the loan, is the grant element (GE) of the loan. By showing the fraction of a loan that is essentially cost-free, the grant element provides a comparable measure of loan concessionality across time, country and currency of issue.

Disbursements: The disbursement figures presented here are total disbursements on EDA loans made to each recipient country. EDA loans are all official loans excluding bilateral loans made for military and defense purposes.

Grant Equivalent (GQ): The grant equivalent of a loan is defined as the difference between the present values of the loan's disbursements and stream of expected debt service payments, or the resources that borrowers receive in excess of their interest and repayment obligations. Conceptually, for each loan, this amount is equal to the net loss to the lender -- equivalent to a grant. The computation of grant equivalents involves discounting two cash flow streams for each loan (disbursements and interest/amortization payments) using discount rates that reflect both the term structure of each loan and the market conditions specific to the loan's currency of issue at the time of valuation.

Effective Development Assistance (EDA): EDA is defined as the sum of grant equivalents and grants, excluding technical assistance. This adjusted measure uses the same conventional grant data but aggregates grant equivalents of loans (GQ) rather than the full face value of all loans deemed concessional. The grant equivalents used to construct EDA are computed using the methodology presented in "Measuring Aid Flows, A New Approach."

= MEDA GQ + M Grants - MTA

Technical Assistance: In the construction of EDA, Technical Assistance (TA) is excluded from grants. The variable, however, is separately available in the file as a memo item to provide the user with the option of constructing a broader definition of aid.